If you purchase a share of stock from your friend who initially purchased the stock three years ago,your purchase of the stock represents a transaction in the primary financial market.

Question

Quizplus · Accepted Answer

If you purchase a share of stock from your friend, who already owned it, then it represents a transaction in the secondary financial market. The primary financial market is where new securities are issued and sold for the first time (e.g. IPO).

If You Purchase a Share of Stock from Your Friend